LL Flooring said in August that it was exploring strategic alternatives, including a possible sale.

The company, headquartered in Richmond, Virginia and one of the country's leading retailers of hard-wood surface flooring, has seen its stock price tumble more than 78% in the last five years. Live Ventures' offer of $5.85 per share represents a roughly 100% premium to LL Flooring's closing price on Wednesday.

"We fear that the Company's stock price will continue its decline unless LL Flooring enters into a transaction with a well-capitalized acquiror that has extensive experience working with synergistic retailers in the near term," Live Ventures CEO Jon Isaac wrote to the company's board.

Given Live Ventures' "experience, capabilities and track record of value creation," Isaac added his company would be "the best partner" for LL Flooring.

LL Flooring and Live Ventures did not immediately respond to Reuters' request for comment.

Live Ventures, which owns Flooring Liquidators and Marquis Industries, reported approximately $290 million in sales and roughly $40 million in adjusted earnings last year. Its stock price is up more than 273% over the past five years. 

In 2019, LL Flooring agreed to pay $33 million to settle with the U.S. Department of Justice and the Securities and Exchange Commission, after the company faced lawsuits related to allegations it sold flooring that contained illegally high levels of formaldehyde. Formaldehyde, used in making building materials, is a known carcinogen.

Live Ventures focuses on acquisitions of U.S.-based middle market companies and is concentrating on the flooring segment. "A transaction between Live Ventures and LL Flooring, which includes 442 stores spanning 47 states across the U.S., would therefore be synergistic given our extensive portfolio of flooring companies," Isaac wrote.

If the acquisition goes through, Live Ventures would be one of the top five flooring retailers in the U.S on a revenue basis.

(Reporting by Svea Herbst-Bayliss; Editing by Rashmi Aich)

By Svea Herbst-Bayliss